1099R

Forum|Forum|3 years ago
March 19, 2023
1 reply
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I have a 1099-R for an IRA account that was converted to a Roth IRA. It was a direct rollover. On turbo tax, I have the same amount entered on line 1 and 2a and the box check total distribution on line 2b. I am use the code "N" for line 7 as indicated on the 1099-R. The amount should be taxable, but turbo tax is not recognizing the amount as taxable. thank you

TurboTax Premier Online

dmertz

Level 15

Code N is for a recharacterization, not a Roth conversion. A recharacterization is not taxable as income, but might have resulted in an excess Roth IRA contribution that is subject to a 10% excess contribution penalty depending on your MAGI and filing status.

A code-N Form 1099-R is required to have a zero in box 2a because the transaction is always nontaxable. TurboTax knows that a code-N distribution is nontaxable and will properly ignore anything you put in box 2a.

dcrtaxAuthor

Level 2

Thank you. Yes, it was conversion from Trad IRA to Roth IRA. I didn't make-up the code. That's is what is on the 1099-R. Perhaps it is a mistake. I will reach-out to broker/firm.